Baker Tilly US chairman and CEO Alan Whitman stepped down abruptly Tuesday after working at the Chicago-based firm and a predecessor firm for 20 years and nearly seven years as CEO.
The Top 10 Firm appointed regional managing partner Jeff Ferro as interim CEO, and managing partner Jeffrey DeYoung as chairman of the board of partners. Whitman's bio was immediately removed from the Baker Tilly website.
Whitman, 57, was elected chairman and CEO of Baker Tilly Virchow Krause in June 2016. The firm was part of the London-based Baker Tilly International network and was later renamed Baker Tilly US. He was previously managing partner of Baker Tilly's Detroit office and before joining Baker Tilly he was a partner at Big Four firm PwC.
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The firm also included a statement from Whitman. "As my two-decades career with Baker Tilly comes to an end, it has been an absolute privilege and honor to serve as CEO for the past seven years," Whitman stated. "I am proud of our organization's resolve to reimagine the workplace and uphold our purpose to unleash and amplify talent. I am confident in the leadership of Jeff Ferro and Jeffrey DeYoung and know that along with the abundant talent at Baker Tilly, the firm's future is bright."
Ferro is a 35-year veteran of the accounting profession who currently leads Baker Tilly's Eastern and Central regions. He previously served as president of the regional firm ParenteBeard and led its
"I am honored for the opportunity to lead Baker Tilly during this time of transition and thank the board and my partners for their confidence," Ferro said in a statement. "Baker Tilly is an exceptional organization with exceptional people and exceptional clients. I look forward to collaborating across our firm as we create the advisory CPA firm of the future, today."
Koltin Consulting Group CEO Allan Koltin has worked closely over the years with Whitman and Baker Tilly, helping arrange a number of M&A deals, including the acquisition of
"In seven years, he took this business from $500 million to $1.5 billion, probably one of the most successful accounting growth stories of the top 25 accounting firms, and as they got bigger, the board wanted to have more involvement in more things," said Koltin. "Alan's style is he's pretty much a CEO built for speed, and what that means is he likes to make the decisions quickly. I think they realized with the size they were at, probably it was time for greater collaboration and board involvement, and he said, 'You know what, that's OK, but that's probably not the preferred way for me. I'm going to go do something else.'"
He believes Whitman saw the board serving more of an advisory role, but given the size of the firm today, the board wanted to play a greater role in running the business.
Koltin classifies the abrupt resignation as amicable, but acknowledged that some social media users have suggested that Whitman was forced out. He denied that was the case.
There is reportedly no formal succession plan in place. Koltin predicted the board would spend the next six months searching for a more permanent CEO to replace Whitman. The interim CEO, Ferro, is 60 years old, according to Crain's, and Koltin expects the next CEO will likely be younger.
"They've got a pretty deep pond with lots of leaders, and they'll probably go to somebody who's more in their 40s, a younger superstar," he said.
He doubts Whitman will be leaving for another accounting firm. "He's got many, many opportunities in the hopper," said Koltin. "The one thing I know he won't do is go into public accounting. That's the only absolute. Obviously, because of the position he sits in, he gets opportunities literally almost every week. He's going to take a little time and just digest them."
